Join Our Team
Come grow with us
and explore endless
opportunities
 
View More »
 
 

Our Company Profile

Learn more about our company and know more about our services.
 
Learn More »
 

Human Resources Development Fund (HRDF)

What Is Human Resources Development Fund (HRDF)?

The Human Resources Development Fund (HRDF) was governed by the Pembangunan Sumber Malaysia Berhad Act 2001. It was established to develop quality human capital and world class workforce in Malaysia to achieve a high-income economy based on knowledge and innovation.
The Human Resources Development Fund (HRDF) is a pool of funds collected from manufacturing and services sectors employers (listed in the first schedule of Pembangunan Sumber Malaysia Berhad Act 2001). These employers are liable to pay a Human Resource Development levy for each working employee at the rate of 1.0% (0.5% for voluntary registered employer) of the monthly wages of the employee. Monthly wages included fixed salary and fixed allowance, non-fixed remuneration such as bonus, commission or incentives are not liable to HRDF.
 

Employer Obligated to Register with HRDF

Section 13(1) of the PSMB Act 2001 stipulates that every employer who is covered under the Act is required to register with PSMB within such time and manner as may be prescribed.
Any employer who is convicted for not registering with PSMB may be fined up to an amount not exceeding RM10,000 or face imprisonment up to a year, or both (Section 13 (2)).
According to the First Schedule of PSMB Act, 2001, definitions of industries covered are as follows:
Services Sector
Sub-Sector / Industry Eligibility Criteria Rate Of Levy Payment
  • Hotel
  • Air transport
  • Travel Agency (inbound)
  • Telecommunication
  • Freight Forwarding
  • Shipping
  • Postal or Courier
  • Advertising
  • Computer Services
  • Energy
  • Training
  • Higher Education
  • Commercial Land
  • Transport & Railway Transport Services
  • Direct Selling
  • Port Services
  • Engineering Support and Maintenance Services
  • Research and Development
  • Warehousing Services
  • Security Services
  • Private Hospital Services
  • Gas, Steam and Air-Conditioning Supply
  • Water Treatment and Supply
  • Sewerage
  • Waste
  • Management and Material Recovery Services
  • Production of
  • Motion Picture, Video and Television Programme, Sound Recording and Music Publishing
  • Information Service
  • Building and Landscape Services
  • Event Management Services
  • Early Childhood Education
  • Health Support Services
  • Franchise
  • Sale and Repair of Motor Vehicles
  • Private Broadcasting Services
  • Driving School
  • Veterinary Services
  • Hypermarket, Supermarket and Departmental Store Services
  • Food and Beverage Services
  • Tourism Enterprise (outbound)
≥ 10 Malaysian Employees (mandatory to register)

5 - 9 Malaysian Employees (given option to register)
1%

0.5%
Manufacturing Sector
Sub-Sector / Industry Eligibility Criteria Rate Of Levy Payment
  • Electrical and Electronic
  • Metal Product
  • Mineral Product
  • Food and Beverages
  • Transport Equipment
  • Plastic
  • Wood & Wood based and Cork
  • Machinery
  • Industrial Chemicals
  • Paper and Pulp
  • Iron and Steel
  • Rubber Product
  • Furniture and Fixtures
  • Printing and Publishing
  • Textile and Apparel
  • Petroleum and Coal
  • Optical and Photography
  • Glass and Glass Product
  • Petroleum Refinery
  • Footwear
  • Ceramic
  • Tobacco
  • Leather
≥ 10 Malaysian Employees (mandatory to register)

5 - 9 Malaysian Employees (given option to register)
1%

0.5%
Mining & Quarrying Sector
Sub-Sector / Industry Eligibility Criteria Rate Of Levy Payment
  • Petroleum and Gas Extraction
  • Mineral and Stone Quarrying
≥ 10 Malaysian Employees (mandatory to register)

5 - 9 Malaysian Employees (given option to register)
1%

0.5%
 

Benefit of HRDF

Employers registered and / or incorporated in Malaysia who have registered with PSMB and pay the HRD levy immediately upon registration are eligible to apply for training grants (financial assistance) to defray all or a major portion of the “allowable costs” of training their employees. Training must be in the area of direct benefit to their business operations. Financial assistance is, therefore, not given to individuals who enroll and finance their own training programmes, whether partially or fully, and subsequently requested their employers for sponsorship. Neither is financial assistance given to employers who bear the cost of training after the successful completion of training by their employees.
Employers who contribute to HRDF are eligible to access their levy payments by claiming training reimbursements through various training schemes that are implemented by PSMB.
 

What We Can Help You?

Payroll can be a real headache for every size of business from one man or woman bands through to large companies. Just because you only have a few employees doesn’t mean that you’ll find payroll simple.
Staying up to date with ever-changing payroll legislation can be a real challenge, but you don’t have to work that way. When you choose to outsource your payroll to us, you can rest assured that your payroll is in safe hands.
We will provide you with assistance regarding Malaysia laws and regulations as well as payment facilities. When you choose to work with us, you can rest assured that you are working within the Malaysia regulations.
Our professional staff will assist our clients with:
  • The preparation and submission of all forms and returns on a timely basis.
  • The computation of payroll whilst ensuring all necessary deductions have been deducted.
  • Pass the payroll information to person in charge of business account.
  • Advice on the rules and regulations update related to payroll.
Talk to Us Now
© Copyright 2018 L & CO.
Business Address:18A, Jalan Sasa 2,Taman Gaya,Ulu Tiram,Johor,81800,MY |Tel: 07 861 7402 |Email: liew@liew.com.my.
Business hours are
L & CO. Rated 5 / 5 based on 5 reviews. | Review Me
 
 

L & Co Plt.

18A & 20, Jalan Sasa 2, Taman Gaya,
81800 Ulu Tiram, Johor, Malaysia.
Tel +607-859 0410
Fax +607-863 1003
Email liew@liew.my
 
     

What Our Client Say

     
L & Co always carry their services in professional way – well planning, in time, precise, friendly and professional. While we are stuck with problems, they can always advice us with industrial best practices and their views.
 
YM Tan
ICT Automation (M) Sdn Bhd
www.ict.com.my
 
  External Audit   Income Tax Submission   GST Consultancy   Tax Incentive Application   Corporate Advisory   Income Tax Audit   GST Submission  
                             
  External
Audit
  Income Tax
Submission
  GST
Consultancy
  Tax Incentive
Application
  Corporate
Advisory
  Income Tax
Audit
  GST
Submission